The CHS Company paid $84,000 cash to its landlord on November 1, 2014 for rent covering the six-month period from November 1, 2014 through April 30, 2015. The books are adjusted only at year-end. Which of the following does not correctly describe the effect on CHS Company's financial statements of the December 31, 2014 adjusting entry?

Stockholders' equity increases $28,000.

Prepaid rent decreases $28,000.

Net income decreases $28,000.

Rent expense increases $28,000.